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DECISION No

DECISION No.677-TTg OF AUGUST 23, 1997 APPROVING THE 1996-2010 MASTER PLAN FOR SOCIO-ECONOMIC DEVELOPMENT IN THE RED RIVER DELTA

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

At the proposals of the Minister of Science, Technology and Environment in Official Dispatch No.36/PTV of January 6, 1997 and of the Chairman of the State Council for Appraisal of Investment Projects in Official Dispatch No.1924/HDTD of April 3, 1997,

DECIDES:

Article 1.- To approve the 1996-2010 master plan for socio-economic development in the Red River Delta along the following major orientations:

I. POSITION AND FUNCTIONS:

The Red River delta includes the following provinces and cities directly under the Central Government: Hanoi, Hai Phong, Hai Duong, Hung Yen, Thai Binh, Nam Dinh, Ha Nam, Ninh Binh and Ha Tay; occupies the central position in the exchange between northeastern Vietnam, northwestern Vietnam, the northern Midlands and northern Central Vietnam; is a sea and air gateway of northern provinces; and embraces Hanoi capital, the political, economic, commercial, cultural, scientific and technical center of the whole country.

II. GENERAL DEVELOPMENT OBJECTIVES:

1. To develop the Red River delta into one of the regions as the motive force for industrial and agricultural development in the whole country.

2. To achieve an economic growth rate of 1.2 - 1.3 times the national average for the whole region.

3. To achieve a level of relative modernization of the productive force and the basic electrification of the region.

4. To increase social labor productivity by eightfold to ninefold compared with 1996; and achieve an average per-capita GDP of around 1,400 USD by 2010.

5. To restructure the economy by increasing the shares of industry and services, while gradually reducing the agricultural share in the GDP.

6. To bring into full play the resources of all economic sectors. The State-run economic sector shall play the leading role and together with the cooperative economic sector serve as the foundation of the national economy, accounting for about 60% of the GDP. To encourage and create conditions for the parallel development of the private economy and the State capital economy.

7. To build a civilized society, to narrow the gap in living standards between urban and rural areas; to build a prosperous life for the people with enough brick or concrete dwelling houses, with favorable conditions for travel, schooling and medical treatment and with a higher-level cultural life.

8. To firmly maintain discipline, public law and order, social safety and ensure security and defense.

III. SPECIFIC OBJECTIVES AND MAJOR TARGETS:

1. The average GDP growth rate of the region shall be around 11% (in the 1996-2000 period) and around 14% (in the 2001-2010 period);

The region�s GDP shall be restructured along the direction: service-industry-agriculture with services accounting for around 51%, industry and construction for around 33%, and agriculture- forestry-fishery for around 16%; by the year 2000, GDP shall be respectively about 50% for services, about 43% for industry and construction and about 7% for agriculture-forestry-fishery;

2. To concentrate on stepping up the development of northern Vietnam�s key economic area, comprising Hanoi, Hai Phong and Quang Ninh;

3. To quickly develop two industrial complexes along Highways No.18 and No.5;

4. To form industrial, cultural, scientific and tourist centers in western Hanoi;

5. To complete and upgrade the infrastructures;

6. To strongly develop tourism and services;

7. To quickly develop the maritime economy;

8. To preserve the ecological environment as well as the socio-economic environment;

9. To firmly maintain security and defense.

IV. MAJOR DEVELOPMENT TASKS:

1. Regarding agricultural development:

- To actively participate in ensuring national food safety. To quickly form areas specialized in the production of high-quality rice and corn to meet consumption, reserve and export demands;

- To efficiently exploit the land potentials so as to build and develop a diversified commodity agriculture of high quality; to develop and enrich the ecological environment, to economically use land in the development of industry and infrastructure construction;

- To build up areas specialized in growing and developing vegetables, fruits, short-term industrial plants, fruit-trees and flowers and livestock breeding so as to quickly increase their percentages in the gross agricultural product. By the year 2000, husbandary product value shall make up about 35-40% of the gross agricultural product; and the value of fruit-tree and industrial plant products shall account for more than 35% of the agricultural product value;

- To develop coastal aquaculture and fishing;

- To develop agriculture in parallel with the processing industry and the building of a new-type countryside; proceed toward achieving agricultural and rural industrialization and modernization;

- To strengthen the technical and material foundation for agricultural production and processing industry, first of all the scientific and technological research institutions, breed supply establishments, and technical demonstration models.

2. Regarding industrial development:

- To achieve a high rate of industrial development so as to create a motive force for the development of the economic branches in the region;

- To give priority to the development of industries that produce export goods in combination with the production of import substitutes by using high-quality domestic materials; to reduce the export of raw materials and semi-finished products while increasing the export of finished products (more than 70% of which must go through processing and have high value);

- To strongly develop consumer goods industries. To encourage branches to manufacture means of production; to renovate manufacturing industry; to develop the electronic industry, apply informatics to economic, managerial and social activities; to selectively develop those industries which cause little pollution to the environment;

- To give priority to the development of high-tech industries; light industries (textile, leather, shoe making, plastics, teaching equipment, children�s toys, handicarft articles); manufacturing industry, electric and electronic techniques, informatics; the processing of agricultural, forest, and aquatic products; the production of basic materials like non-ferrous metals, steel, construction materials; heavy industry and raw materials;

- To invest in the construction of a number of industrial parks in Hanoi, Haiphong and Hai Duong along Highways No.21A, No.1, No.5 and No.18.

3. Regarding the development of services:

- To exploit the advantages of the region�s geography to quickly develop tourism and services, meeting the demand of the provinces in the area and neighboring provinces;

- To expand the commercial network and develop trade centers to ensure the supply of goods and services for people in the region and neighboring provinces;

- To expand tourist activities, communications, banking, financial, ensurance and other services, and raise their quality and efficiency.

4. Regarding the development of infrastructure:

- To develop land, water and air transport in accordance with the general plan: to upgrade the system of seaports and airports; to perfect the mass transit systems in big cities; to raise the quality of transport and transport services, attach importance to the development of rural communications and electrification; to diversify and modernize communication services;

- To upgrade and perfect the system of river and sea dikes and infrastructures in service of flood and storm prevention, combat and control; to build up a comprehensive irrigation and drainage system and basically complete the reinforcement of the dike system with concrete;

- To meet the demand of clean water for production, business and daily life; improve the living and environmental conditions in urban and rural areas.

- To basically complete electrification of the area;

- To upgrade the system of schools, hospitals, clinics and cultural houses;

- To arrange industrial spaces: to form three industrial clusters and major industrial development corridors: Hanoi, Hai Phong and the southern cluster (including Nam Dinh, Phu Ly, Ninh Binh and Tam Diep); and industrial parks along the corridors of highways No.1, No.5, No.18. No.21A and No.10;

- To form a network of urban agglomerations, including cities directly under the Central Government, provincial cities, towns, district towns, and townships evenly distributed in the whole region around Hanoi, Hai Phong and Nam Dinh centers. The above-said network shall serve as basis for promotion of urbanization and modernization of the rural population areas in the region.

5. Regarding socio-cultural development:

- To raise the quality and efficiency of educational and training system so as to meet the requirements of regional and national industrialization and modernization;

- To expand the network of primary healthcare and medical examination and treatment for the people, to invest in upgrading hospitals attached to the Hanoi intensive healthcare center, and implement well the family planning program;

- To expand the radio and television broadcasting system and raise its quality to meet the people�s demand for information. To widely expand physical education and sport activities among the population and raise the level of some sports with good potentials for competition at home and abroad;

- To incorporate national programs for socio-economic development so as to implement well the program on hunger elimination and poverty alleviation in the whole region.

V. MAIN SOLUTIONS:

1. To implement the master plan, there should be a system of comprehensive measures to mobilize every resource inside and outside the country for socio-economic development of the Red River delta. It is necessary to reflect and concretize the master plan�s major orientations and tasks of socio-eonomic development, the long-term, medium-term and short-term plans in the development programs and specific investment projects on the territory of each province in the region.

2. It is necessary to concretize and propose solutions for the mobilization of capital, development of human resources, science, technology and environment, to expand markets through mechanisms and policies suitable to the characteristics of the whole region, to each province or city in the region and submit them to the Prime Minister for consideration and decision (for issues beyond the competence of the local authorities), with a view to fulfilling well the objectives, tasks and specific norms for the socio-economic development already set in the master plan.

3. On the basis of the approved master plan, it is necessary to revise the regional socio-economic development programs and list of investment projects and arrange them rationally according to the order of priority so that they can be gradually put into the annual plan of each province or city in the region. In the course of implementing the master plan, it is necessary to update information; make preliminary and final review so as to draw experiences for evaluation and timely readjustment.

Article 2.- The People�s Committees of the provinces and cities directly under the Central Government and located in the Red River delta shall, together with the ministries and branches at the central level, elaborate detailed five-year plans and annual plans for organizing the implementation of the specific programs and projects under their respective management in accordance with the targets and development orientations already set in this master plan.

The People�s Committees of the provinces and cities directly under the Central Government and located in the Red River delta shall have to closely inspect and supervise the implementation of the approved master plan. The ministries and branches at the central level shall have to coordinate with and support the above-said provinces and cities in organizing the implementation of the elaborated programs and projects already adopted in order to ensure uniformity between the master plan on the socio-eonomic development of each province or city, and the planning on key economic areas in Northern Vietnam, the territorial planning of the Red River delta and of the whole country.

Article 3.- This Decision takes effect from the date of its signing. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People�s Committees of the provinces and cities directly under the Central Government in the Red River delta and the related provinces shall have to implement this Decision.

The Prime Minister

VO VAN KIET